module 4

argues that individual consumption decisions

are always made because people desire to maximize their

satisfaction from consuming various goods and services.

An individual’s pleasure, happiness, or satisfaction is called

The spending on any good or service is exactly equal to the

People are aware of the_____ of products available in the

market.

People are aware of the ______ of the products in the market.

People are aware of the ________ of the product.

suggests that consumers rank all consumption

bundles based on the level of satisfaction they feel after

consuming these products or services.

are certain combinations of two

commodities that will yield them a certain level of utility. These

bundles can form an indifference curve.

are certain combinations of two

commodities that will yield them a certain level of utility. These

bundles can form an indifference curve.

shows combinations of two commodities,

which, when consumed, will yield the same level of satisfaction.

The indifference curve depicts values that are considered by the

utility function.